The document discusses concepts related to organizational climate and continuous improvement. It presents a framework called Climetrics® that measures an organization's climate across different dimensions like engaging, learning, leading, and improving. It can be used to assess an organization's current climate and identify areas for improvement. Examples are given of how the Climetrics® framework was used to evaluate the climate at different parts of an organization before and after a transformation initiative. The goal is to create a climate that better enables continuous adaptation to customer needs.

1. Gathering customer
intelligence data
Collaboration
Employee influence
on products and services
H ow well we
respond to customers
Respectful
Innovating ideas
for customers
Organisational
Employee influence Understanding
on other functions
Sharing Intelligence
with the team
Customer
Trustworthiness Purpose
Challenging
Freedom and
decision making
Employee influence
on managing practices
Courage
Employee influence
on end-to-end processes
Sharing Intelligence
Across the function
Performance
Sharing Intelligence
Management
with top/senior
And Measurement
management
Leadership

2. The Lean Myth Buster: How to bust the Lean myths
at work.
Stephen Parry
Author of Sense and Respond
Senior Partner at Lloyd Parry
@Leanvoices

3. Stephen Parry
Author of Sense and Respond
Senior Partner at Lloyd Parry
@Leanvoices
Blog : www.LeanVoices.com
Stephen.parry@lloydparry.com
www.lloydparry.com
www.slideshare.net/SGParry/presentations
All sources, influences, acknowledgements and reading lists
can be found on www.leanvoices.com
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4. Leadership comes from the top
Leadership is an activity not a position
and must be practiced by everyone

5. Sense and Respond Approach to Service
Extracts from Sense and Respond by Stephen Parry
DRIVE the service and the strategy
1.
People
Your clients and their
customers
Capture Demand Data
Build trust with customers
to customers
2.
People
Your front-line
operation
Drive support services
Build trust with suppliers
SENSE what matters
Adapt – Evolve – Inform – Innovate
RESPOND
Source Fujitsu Case Study: Sense and Respond Book Used with kind permission
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3.
People
Your support
organisation

6. Lets do value stream mapping to improve the
business
Very few do value stream mapping; most map
internal processes and the departments within
their own company – many don’t even include the
customer.

7. Traditional approach: Feasible parts creating an infeasible
whole.
Functional units
F1
Independent
solutions
designed to
meet functional
targets and
goals.
S1
F2
F3
S2
S3
F4
S4
Throughput process
Based on a text description from Systems Thinking Jamsid Gharajedaghi
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Fn
Sn
It’s not
unusual to
have thirty
or more
solutions
lining up for
attention.

8. Traditional approach: Feasible parts creating an infeasible
whole.
Functional units
F1
Independent
solutions
designed to
meet functional
targets and
goals.
S1
F2
S2
F3
S3
F4
S4
Improved Effectiveness ?
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Fn
Sn
It’s not
unusual to
have thirty
or more
solutions
lining up for
attention.

9. Adapted by Stephen Parry from Fourth Generation Management Brian Joiner
Our theory of
how people
and organisations
work best.
Perspectives
Level Four
Design Principles
Standards
H.R.
Process
Management
IT Support
Systems
Front-line
Fleet
Management
Level Three
Change
Management
Behaviour
Climate
Infrastructure
Logistics
Stores
Escalation
Problem
Management
CORE
Value
Resource
Management
Safety
Services
Knowledge
Management
Building
Services
Finance
Budgets
Commercial
Trading
Measurement
Governance
The Process
Level Two
Level One
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The Organising
System
The Output
©Copyright 2013

10. The customer/service user challenge: They don’t have time………….they say things like:
Solve my problem, completely.
Don't waste my time or cause me hassle.
Minimise the cost of doing business with you.
Provide exactly what I need and deliver value where I need it.
Reduce the number of decisions I must make to resolve my problems.
Don’t get me to help you, I want you to help me!
Adapted from Lean Solutions: Jim Womack and Dan Jones by Stephen Parry
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11. Interpretation by Stephen Parry to combine Consumption and Production Cycles Originally described by Womack and Jones: Lean Solutions
Specify value from the
standpoint of the end customer.
Identify all the steps in
the value stream eliminating
every step and every action
and every practice that
does not create value
Maximise Value
Maximise
Make value-creating steps occur in a
Value
tight and integrated sequence so the
product/service will flow smoothly
toward the customer
Minimise
Loss
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Don’t get me to help you,
I want you to help me!
Reduce the number of
decisions I have to make.
Provide exactly what I need,
where I need it, when I need
it.
Minimise the cost of
doing business with you.
Service User Business Process
Delivery Process
Minimise Loss
Don't waste my time
or cause me hassle.
Solve my problem,
completely.
Tee Value Stream: Optimising the provision of service for service users
©Copyright 2013
2012
Let customers pull value
from the next upstream activity.
Pursue Perfection. These steps lead
to greater transparency, enabling
teams to eliminate further waste

12. Lets teach them the tools and methods to
become Lean
It’s our perspective and work climate that needs
to change to become Lean

13. From first to last, Respect for People and a Blame Free Culture.
Extracts from a broadcast by Stephen Parry
We believe people are capable of learning and taking on additional
responsibility, and if you create the right environment, people will
want to learn and will actively seek more responsibility.
In this context, ‘respect for people’ means
understanding that all people have the ability
to learn and the right to be given
opportunities to learn.
There is a world of difference
between helping people to see
and telling them they are
blind.
Most of all we must trust that
people are capable of owning
and solving their own problems
with a little bit of help.
Managers helping employees
freely choose how they solve
problems displays total
respect.

14. Gathering customer
intelligence data
Collaboration
Employee influence
on products and services
H ow well we
respond to customers
Respectful
Innovating ideas
for customers
Organisational
Employee influence Understanding
on other functions
Sharing Intelligence
with the team
Customer
Trustworthiness Purpose
Challenging
Freedom and
decision making
Employee influence
on managing practices
Courage
Employee influence
on end-to-end processes
Sharing Intelligence
Across the function
Performance
Sharing Intelligence
Management
with top/senior
And Measurement
management
Leadership

15. The Work Climate is the combined
perception of customers, employees,
managers and leaders. It predicts the
performance and long term
profitability of an organisation.
We use a Climate diagnostic called
Climetrics® which also measures how
well the organisation as a whole,
identifies, understands and delivers
against customer needs and how it
adapts and locks on to changing
customer needs.
The diagnostic informs indicates what
actions we need to take to create a
superior work climate.
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16. ™
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17. Engaging, Learning, Leading, Improving Adaptive Dimensions
Learning
Engaging
A
Freedom and decision
making
E
Organisational
understanding
B
Customer facing activity
F
C
Customer intelligence
gathering
Sharing intelligence
across the function
G
D
Sharing intelligence with
the team
Sharing intelligence with
other functions
H
Sharing intelligence with
top/senior management
Improving
Leading
M
Employee influence on
products and services
I
N
Employee influence on
managing practices
Performance
management
J
Adaptive leadership
O
Employee influence on
other functions
K
Responding to customer
issues
P
Employee influence on
end-to-end processes
L
Implementing ideas to
better serve customers
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18. Does the job design allow all staff to
engage with customers and users?
To what extent can staff modify solutions
without management permission?
ENGAGING
Is everything forbidden unless permitted,
or is everything permitted unless
forbidden?
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™

19. Do staff routinely share business
intelligence and improvement information
with senior management?
LEARNING
™
What is the management focus? employee utilisation, cost reduction and
work intensification or creativity, customer
outcomes, problem solving, learning and
sharing knowledge, collaboration?
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20. Do employees influence end-to-end
business processes?
What influence does staff have to
improve the measurement system?
IMPROVING
What influence do employees have on
improving products and services?
™
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21. Do Leaders foster a no-blame climate to
surface problems for teams to work on?
LEADING
™
Do leaders routinely spend time at the
workplace solving front-line issues with
the staff?
Do leaders pay more attention to
efficiency-driven functional targets or
end-to-end effectiveness at creating
customer and user outcomes?
Who does the Leading? A few select
people or most people?
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22. Climate Landscapes
CHARACTER
Sense and
Respond
Mass
Adaptation
Lean
CUSTOMER
EXPERIENCE
EMPLOYEE
EXPERTISE
Personalised,
individual,
Bespoke.
Unique.
Customer
experience is
personal and
unique
Expert Broad
knowledge to
provide
integrated
solutions
Flexible
offerings
Co-Creation of
solution
design
OFFERINGS
IMPROVEMENT
RESPONSIBILITY
Front-line
experiments
and learning
MANAGEMENT
FOCUS
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Disciplined
experimentation
Problem solving
Mass
Production
Low variety
Transactional
and processed
Basic
No customer
involvement in
solution
design
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Improvement
boards
Improvement
specialists
Suggestion
schemes
©Copyright 2013
Employee
utilisation, cost
reduction, work
intensification.
Disciplined
compliance
COMPETITIVE
BASIS
Trusted
advisor and
expert
LEADERSHIP
FOCUS
Listen and
adapt
Integration
Business
outcomes
Commoditised
High Volume
Low Margins
Economies of
scale
Command
and control

23. Climetrics® Landscapes
CHARACTER
Customer Value
Enterprise ®
OFFERINGS
CUSTOMER
EXPERIENCE
The Department
Store
Mass
Specialisation
Customer
experience is
personal and
unique
Flexible
Offerings
Mass
Adaptation
Personalised,
individual,
Bespoke.
Unique.
High level of
customer
interaction to
identify needs
and situation
Expert Broad
knowledge to
provide
integrated
solutions
IMPROVEMENT
RESPONSIBILITY
Co-Creation of
solution design
More choice
from a variety
of standard
offerings
EMPLOYEE
EXPERTISE
Front-line
experimentation
and Learning
MANAGEMENT
FOCUS
Creativity,
expertise, new
products and
services.
Customer
outcomes.
Problem Solving
Specific and
deep specialist
knowledge and
skills
Front-line staff
Managers
Developing staff
knowledge
Capture and reuse
solutions
COMPETITIVE
BASIS
Trusted
advisor and
expert
Mass
Customisation
The Bus
Mass
Production
Fixed menu
with simple
options
Low Variety
Discuss simple
needs and
available
options.
Low customer
involvement
during solution
design
Understand
basic option
configurations
Transactional
and Processed
Basic
No customer
involvement in
solution design
Central Change
Teams
Business
Outcomes
In-depth
specialities
connected to
expert
networks
Cost, efficiency
and Coordination
Commodity
Driven
Improvement
Specialists
Suggestion
Schemes
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Consultative
Economies of
Scope
Managers
Improvement
Boards
Listen and
adapt
Integration
Effectiveness
The Pizza
Parlour
LEADERSHIP
FOCUS
Direct and
Control
Emphasis on
providing
value-add and
choice
Employee
utilisation, cost
reduction, work
intensification.
Commoditised
High Volume
Low Margins
Economies of
Scale
Command and
Control

24. C
Sharing intelligence across
the function
Sharing intelligence with
other functions
Sharing intelligence with
top/senior management
I
Performance management
J
Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
M
Employee influence on
products and services
N
Employee influence on
managing practices
O
Employee influence on
other functions
P
Mass
Specialisation
Organisational
understanding
H
Mass
Adaptation
Sharing intelligence with the
team
G
Improving
Customer intelligence
gathering
F
Leading
Customer facing activity
E
Learning
Freedom and decision
making
D
Engaging
A
B
Applications Company ICT. Before Transformation
Employee influence on endto-end processes
Transformation objective
Mass
Customisation
Mass
Production
A
B
C
D
E
F
G
H
I
J
K
L
Climetrics® Climatograph
Climate Strength
M
N
O
P

25. A
C
Sharing intelligence with
top/senior management
Performance management
J
Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
M
Employee influence on
products and services
N
Employee influence on
managing practices
O
Employee influence on
other functions
P
Employee influence on endto-end processes
Transformation objective
Mass
Customisation
Mass
Production
A
Climate Strength
Sharing intelligence with
other functions
I
Mass
Specialisation
Sharing intelligence across
the function
H
Mass
Adaptation
Organisational
understanding
G
Improving
Sharing intelligence with the
team
F
Leading
Customer intelligence
gathering
E
Learning
Customer facing activity
D
Engaging
Freedom and decision
making
B
Applications Company ICT After Transformation
B
C
D
E
F
G
H
I
J
K
L
Climetrics® Climatograph
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M
N
O
P

26. A
B
D
E
F
G
H
I
J
K
L
Climetrics® Climatograph
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M
N
O
P
Employee influence on
products and services
N
Employee influence on
managing practices
O
Employee influence on
other functions
P
Climate Strength
C
Implementing ideas to
better serve customers
M
B
Responding to customer
issues
L
A
Adaptive leadership
K
Mass
Production
Performance management
J
Mass
Customisation
Sharing intelligence with
top/senior management
I
Mass
Specialisation
Sharing intelligence with
other functions
H
Mass
Adaptation
Sharing intelligence across
the function
G
Improving
Organisational
understanding
F
Leading
Sharing intelligence with the
team
E
Learning
Customer-intelligence
gathering
D
Engaging
Customer-facing activity
C
Climate at two different development teams
Freedom and decision
making
Employee influence on endto-end processes

27. Organisational
understanding
Sharing intelligence across
the function
Sharing intelligence with
other functions
H
Sharing intelligence with
top/senior management
I
Performance management
J
Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
M
Employee influence on
products and services
N
Employee influence on
managing practices
O
Employee influence on
other functions
P
Employee influence on endto-end processes
Transformation objective
Mass
Specialisation
Mass
Customisation
Mass
Production
A
Climate Strength
Sharing intelligence with the
team
G
Improving
Customer-intelligence
gathering
F
Mass
Adaptation
Leading
Customer-facing activity
E
Learning
B
D
Engaging
Freedom and decision
making
C
Global Run Infrastructure Company : Before Transformation
A
B
C
D
E
F
G
H
I
J
K
L
Climetrics® Climatograph
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M
N
O
P

28. Organisational
understanding
Sharing intelligence across
the function
Sharing intelligence with
other functions
H
Sharing intelligence with
top/senior management
I
Performance management
J
Adaptive leadership
K
Responding to customer
issues
L
Implementing ideas to
better serve customers
M
Employee influence on
products and services
N
Employee influence on
managing practices
O
Employee influence on
other functions
P
Employee influence on endto-end processes
Transformation objective
Mass
Specialisation
Mass
Customisation
Mass
Production
A
Climate Strength
Sharing intelligence with the
team
G
Improving
Customer-intelligence
gathering
F
Mass
Adaptation
Leading
Customer-facing activity
E
Learning
B
D
Engaging
Freedom and decision
making
C
Global Run Infrastructure Company : After Transformation
A
B
C
D
E
F
G
H
I
J
K
L
Climetrics® Climatograph
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©Copyright 2013
M
N
O
P

29. Leadership comes from the top
Leadership is an activity not a position
and must be practiced by everyone guided by a
common view of reality.
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30. Functional
End to End
What you measure tells everyone what you think
Mean time
to process
by priority level
You’ll not find many
measures in this zone.
Average
IT Availability
Time
% resolved within
Target priority MTP
Customer
Satisfaction ?
Depends
No. Calls Exceed
SLA
Av time for 2nd
Calls/ Agent
level to respond
% of Calls
/Day
Convt to Tickets No. calls without
Esc/agent
% Incorrectly
Av Time
% Incorrectly
assigned
Call Answr
Categorised
% Incidents
Re-assigned
Agent
Utilisation
% Calls
Bypass 1st Line
Av Time to First
resolve Time
% of calls that are
Fix
Average
Service Requests
Handle Time
No
‘If you measure your
business using averages,
don’t be surprised to find
yourself running an
average business.’
Matters to Customers
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Purpose
©Copyright 2012
Yes

31. Lean is about efficiency and removing waste
Lean is all about Effectiveness and Creating
Customer Value
There has to be a clear line of sight between
everything you do and customer value

32. IT and application support staff Measurement
before and after understanding users.
32

33. All our performance targets are green
All your performance targets being green is a red
flag to lean thinkers
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34. Wrong measures, wrong pain, wrong outcomes.
Service Measures and SLAs.
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End-user Measures.
©Copyright 2012
End User pain points

35. What does Adaptive Lean mean for the organisation, leaders, managers and
staff?
•
•
Organisation.
– Consider the measurement and
governance systems
– More rigorous CI structures
– Potentially new commercial
arrangements with customers
– New operational performance
measures
– New operating model may be required
Leaders
– Might be assigned to end-to-end
accountabilities for particular value
creating activities.
– Encourage fail-safe experimentation
– Encourage more questioning from
managers and staff
– Create a blame-free culture
– Have patience
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•
Managers
–
–
–
–
–
–
–
•
Operational review processes
Visual Management
A3 thinking coaching
Performance review re-focus
Promote a blame free culture.
Planning time for improvement
Encourage staff to question
Staff
– A3 thinking problem solving
– Question more seeking evidence
– Learn a number of general Lean
improvement methods and role
specific Lean methods
– Lean more about other functions and
how they operate.
– Learn to trust management.
©Copyright 2013

36. References , influences and acknowledgements.
Book Sense and Respond: The Journey to Customer Purpose.
Parry, Barlow, Faulkner (Palgrave Macmillan)
Landmark Education and the Landmark Forum www.landmarkworldwide.com
The Human Side of Enterprise
Douglas McGregor Annotated and Updated by Joel Cutcher-Gershenfeld
Beyond McGregor’s Theory Y: Human Capital and Knowledge-Based Work in the 21st Century Organization Kochan, Orlikowski, CutcherGershenfeld http://mitsloan.mit.edu/50th/pdf/beyondtheorypaper.pdf
Service Climate and Customer Intelligence Workers.
Parry and Fisher (2006)
The Essential Deming. Leadership Principles.
Orsisni (McGraw Hill)
Fourth Generation Management
Brian Joiner
Reciprocity Definition
http://en.m.wikipedia.org/wiki/Reciprocity_(social_psychology)
Reciprocity An Economics of Social Relations.
Kolm (Cambridge)
Service Quality Research Perspectives.
Schneider, White (Sage)
Managing to Learn (A3)
John Shook
For extensive list of acknowledgements, influences and references
go to www.leanvoices.com and for Sense and Respond go to www.lloydparry.com
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©Copyright 2013

37. Gathering customer
intelligence data
Collaboration
Employee influence
on products and services
H ow well we
respond to customers
Respectful
Innovating ideas
for customers
Organisational
Employee influence Understanding
on other functions
Sharing Intelligence
with the team
Customer
Trustworthiness Purpose
Challenging
Freedom and
decision making
Employee influence
on managing practices
Courage
Employee influence
on end-to-end processes
Sharing Intelligence
Across the function
Performance
Sharing Intelligence
Management
with top/senior
And Measurement
management
Leadership

38. TM
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©Copyright 2013

39. © 2013 Service Climate Management Ltd. All rights reserved
No part of this publication may be reproduced or transmitted in any form or for
any purpose without the express permission of Service Climate Management
Ltd. The information contained herein may be changed without prior notice.
Service Climate Management
Management Ltd.
Customer Value Enterprise
Management Ltd.
Climetrics
® is a registered trade mark of Service Climate
® is a registered trade mark of Service Climate
® is a registered trade mark of Service Climate Management Ltd.
The Engaging, Learning, Leadings Improvement device is a TM of Service Climate
Management.
CORE Demand Profile TM is a trademark of Service Climate Management Ltd.
All other product and service names mentioned are the trademarks of their
respective companies. Data contained in this document serves informational
purposes only.
The information in this document is proprietary to Service Climate Management
Ltd. No part of this document may be reproduced, copied, or transmitted in any
form or for any purpose without the express prior written permission of Service
Climate Management Ltd.
This document is a preliminary version and not subject to your license
agreement or any other agreement with Service Climate Management Ltd. This
document contains only intended strategies, developments, models, methods
and products and is not intended to be binding upon Service Climate
Management to any particular course of business, product strategy, and/or
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